"Now that OpenAI can be a for-profit company, it can have an initial public offering. Reuters reports that the target market cap from the transaction is a $1 trillion valuation, which it will use to raise $60 billion. The IPO could be as early as the second half of 2026, or it may be delayed a quarter or two to 2027, depending on the overall stock market. At $1 trillion, it would be worth as much as Berkshire Hathaway."
"If anyone needs proof that the AI-driven stock market is frothy, it is this $1 trillion figure. In the first half of the year, OpenAI lost $13.5 billion, on revenue of $4.3 billion. It is on track to lose $27 billion for the year. One estimate shows OpenAI will burn $115 billion by 2029. It may not make money until that year."
"To some extent, this depends on how many other companies will make money on artificial intelligence. Most people use it for free. AI has already been integrated into products at large tech companies like Microsoft, Amazon, and Meta. Among them, they have committed to tens of billions of dollars in investment, most of which will go to huge data centers."
OpenAI aims for a $1 trillion IPO valuation to raise $60 billion, potentially in late 2026 or into 2027 depending on market conditions. The company reported $13.5 billion losses in the first half on $4.3 billion revenue and is on track for a $27 billion annual loss, with forecasts of $115 billion cash burn by 2029 and possible profitability only by that year. Key risks include uncertain profitability, widespread free consumer use, competition from large tech firms integrating AI, massive data-center investments requiring continued financing, and substantial energy consumption impacts.
Read at 24/7 Wall St.
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